[Paper Review] Impact of Artificial Intelligence on Businesses: from Research, Innovation, Market Deployment to Future Shifts in Business Models

Neha Soni, Enakshi K. Sharma+2 more|arXiv (Cornell University)|May 3, 2019

Big Data and Business Intelligence47 citations

TL;DR

This paper presents a three-dimensional Neo-Schumpeterian framework to study AI's impact on businesses, covering research/innovation, market deployment, and evolving business models, including actors and risks.

ABSTRACT

The fast pace of artificial intelligence (AI) and automation is propelling strategists to reshape their business models. This is fostering the integration of AI in the business processes but the consequences of this adoption are underexplored and need attention. This paper focuses on the overall impact of AI on businesses - from research, innovation, market deployment to future shifts in business models. To access this overall impact, we design a three-dimensional research model, based upon the Neo-Schumpeterian economics and its three forces viz. innovation, knowledge, and entrepreneurship. The first dimension deals with research and innovation in AI. In the second dimension, we explore the influence of AI on the global market and the strategic objectives of the businesses and finally, the third dimension examines how AI is shaping business contexts. Additionally, the paper explores AI implications on actors and its dark sides.

Motivation & Objective

• Motivate the study by highlighting rapid AI/automation pace and its reshaping of business models.
• Propose a three-dimensional research model based on innovation, knowledge, and entrepreneurship.
• Analyze AI effects across research/innovation, market deployment, and business-context shifts.
• Discuss implications for actors and identify potential dark sides of AI adoption.

Proposed method

• Develop a Neo-Schumpeterian-inspired three-dimension framework (innovation, knowledge, entrepreneurship).
• Define and apply three dimensions: AI research/innovation, AI influence on global market and strategic business objectives, and AI shaping of business contexts.
• Explore implications for actors and potential dark sides within the framework.
• Provide a qualitative synthesis of AI's overall impact on businesses and future shifts in business models.

Experimental results

Research questions

• RQ1 How does AI influence research and innovation activities in organizations and ecosystems?
• RQ2 What is AI’s impact on global markets and the strategic objectives of firms?
• RQ3 How does AI reshape business contexts and the roles of actors, including potential dark sides?
• RQ4 What future shifts in business models emerge from AI-driven changes across the three dimensions?

Key findings

• A three-dimensional model captures AI’s impact across research/innovation, markets/strategy, and business contexts.
• AI adoption affects actors and strategic objectives, shaping how firms compete and collaborate.
• The framework highlights potential dark sides of AI adoption that warrant attention from managers and policymakers.
• The study synthesizes insights to support understanding of future shifts in business models due to AI.